BTC and ETH inflows to exchanges currently total $1.65 billion.
With this less liquid scenario, the likelihood of volatility increases, argues Glassnode.
Inflows of major cryptocurrencies Bitcoin (BTC) and Ether (ETH) to exchanges have fallen to their lowest levels in more than two years.
At the moment BTC and ETH inflows on exchanges are $1.65 billion, the lowest since the start of the 2020-2021 bull market. This can be seen in the following chart from the market data company: glass knot.
“With exchanges being the primary target for market speculation, a sharp drop in inflows underscores the fact that structural market liquidity remains extremely low,” Glassnode noted.
It should be noted that liquidity is understood as the speed and ease with which an asset can be bought and sold at stable prices. With that in mind, Glassnode pointed out that With a less and less liquid market and heavily reduced trading orders, the likelihood of price volatility increases “sharp”.
Glassnode stated that the recent development has exacerbated the decline in BTC and ETH inflows reports It revealed that US trading firms Jane Street and Jump Crypto have withdrawn from the cryptocurrency market due to government regulatory pressure.
Meanwhile, the price of bitcoin, the cryptocurrency that tends to guide the major assets in the market, appears to be struggling to rise in price. As reported by CriptoNoticias, this week it returned to the area where it currently formed support (its minimum) below USD 27,000.